Vancouver ranks as the second least affordable major city in the world after Hong Kong when it comes to buying a house, according to an international survey released this week. Continue reading.

“It’s impossible to have a healthy understanding of the condominium market by only looking at the condominium market when provincial growth planning policies are forcing a shift to higher density development,” said George Carras, president of RealNet. “While it’s hard for most people to miss the growing number of new condominiums, it’s easy to miss the shrinking number of ground-related developments across the GTA, and therefore misunderstand the market.”

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High-rise sale prices for December average out at $436,024 in December across the GTA, a 0.4% increase from a year ago. By comparison, low-rise prices climbed to $632,868, a 16% jump from a year ago.

In simple terms, today’s low rise purchasers are coming out on the losing end of a supply and demand equation

In 2012, low-rise sales were down 20% from a year ago to 14,069 — the second-lowest level since 2000. Low rise sales represented only 43% of all new home transactions last year. The group also said prices for low-rise homes have risen 44% over the past four years based on its index while supply has decreased 52% during the same period.

In its release, the group lays the blame on land and constraints, regulatory requirements and a complex approval process. “In simple terms, today’s low-rise purchasers are coming out on the losing end of a supply and demand equation,” Steve Deveaux, first chair of BILD.

RealNet says the gap between a low-rise and high-rise home in the GTA grew to a record high of $196,844, more than double the long-term average.

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